The event industry, while navigating a challenging economic landscape, continues to demonstrate resilience, with strong business conditions overall. According to Meeting Professionals International’s (MPI) Q3 Meetings Outlook, supported by IMEX, the industry is experiencing a slight increase in overall business projections. A robust 72% of respondents anticipate favorable conditions for the year ahead, marking an improvement from the previous quarter. However, this figure remains below the record highs of 80% or more seen in recent years, indicating a shift towards a more cautious optimism.
Despite the positive sentiment, the expectation for significant business growth has been trending downwards. Only 13% of respondents anticipate an overall business improvement exceeding 10% in the next year. This downward trend, which began nearly two years ago, suggests that the industry, while recovering, might be stabilizing rather than experiencing the rapid growth witnessed in the immediate aftermath of the pandemic.
This data presents several potential interpretations. The event industry might simply be normalizing after an initial post-pandemic boom, or there could be lingering concerns about a potential economic slowdown or emerging challenges on the horizon. While overall business projections reflect caution, the same cannot be said for in-person events.
Live event attendance projections have witnessed a significant increase, with 76% of respondents projecting favorable attendance, up from 71% in the previous quarter. This brings live-event attendance expectations back to the levels observed in Q1 of this year, emphasizing the enduring strength and appeal of in-person gatherings. The return of in-person events has become a vital lifeline for the industry, as participants and organizers seek out face-to-face interactions, a practice that was limited during the peak of the pandemic.
“All the big conferences are back, whether or not these companies have the budget to do an after-party,” observes Alicia Schiro, founder of Aced It Events in New York City. While companies are enthusiastic about hosting and attending large-scale in-person events, budget constraints have started to play a more prominent role in event planning. Schiro highlights a trend where companies still desire high-quality events but are more cautious about their spending. “Typically, they’ll spend a ton of money on the after-party. Now they’ll say, ‘What can you find us for $x?’” Schiro notes. This reflects a broader industry sentiment where event organizers are seeking to optimize costs while still delivering engaging experiences.
While in-person events have been the primary focus of the industry’s resurgence, virtual events remain a stable part of the business landscape. Virtual attendance projections have remained steady, reflecting the continued relevance of virtual or hybrid formats in the event industry. Many companies have embraced virtual platforms as a cost-effective way to engage with global audiences, and this trend shows no signs of fading. However, virtual events, while still important, are not expected to experience the same kind of growth that in-person events are enjoying.
Despite the positive indicators in live-event attendance, the event industry is not immune to the broader economic landscape. Several factors are contributing to a more cautious business outlook for the year ahead. Rising inflation, global geopolitical issues, and fluctuating consumer confidence are all contributing to the industry’s tempered optimism.
One of the critical challenges facing event organizers is the willingness of attendees to spend on event participation. As Schiro points out, while well-established brands like Dell or Microsoft can expect attendees to pay for their own accommodations, newer companies attempting to gain market share may struggle to attract participants willing to cover their expenses. “If you’re well known, like Dell or Microsoft, people will pay,” Schiro says. “If you are a new company trying to get in front of customers, they won’t.” This discrepancy highlights a growing divide between established brands and newer market entrants in their ability to attract attendees, adding to the complexity of event planning in today’s economic environment.
A recent example of this occurred when an event was postponed after the organizer struggled to convince attendees to pay for their own rooms. This example underscores the growing challenge of balancing event costs while maintaining participant engagement.
Budgeting has become a key focus for event planners as economic pressures force companies to rethink their spending strategies. While demand for live events remains strong, many companies are cutting back on extras like after-parties and entertainment. As Schiro notes, “If people can afford it, they’ll invite more, but some of my clients have struggled with attendance.” This shift toward more budget-conscious planning is indicative of the broader economic trends affecting the event industry.
With the possibility of an economic slowdown looming, companies are becoming more strategic with their event budgets, focusing on delivering value while minimizing unnecessary expenses. The event industry’s recovery has been impressive, particularly in the realm of live events. However, the slower growth projections suggest that the industry may be heading toward a period of normalization. The rapid post-pandemic recovery may be giving way to more moderate, sustainable growth as the industry finds its footing in a changing economic landscape.
It’s also possible that the more cautious outlook reflects concerns about a potential economic slowdown. Rising inflation, supply chain issues, and global instability have created an environment of uncertainty that could impact the event industry’s growth in the coming year. While many event planners are optimistic about the future, they are also keeping a close eye on the broader economic factors that could influence their business.
MPI’s Q3 Meetings Outlook provides valuable insights into these trends, indicating that while the event industry remains resilient, it is also cautious about what lies ahead. The Q3 Meetings Outlook reflects an event industry that has rebounded strongly from the challenges of the pandemic but is also preparing for a more uncertain economic future. The increase in live-event attendance projections highlights the continued demand for in-person interactions, but the tempered business growth expectations suggest that the industry is navigating a complex landscape.
As companies continue to adapt to economic pressures, the focus will remain on delivering high-quality events that balance cost and attendee engagement. With virtual events holding steady and live events thriving, the future of the event industry appears resilient, even as it faces potential headwinds. Event planners and organizers will need to stay agile, adjusting their strategies to meet the evolving needs of their clients and participants while remaining mindful of the economic factors that could influence their success.
Overall, the event industry is positioned for continued growth, albeit with a more cautious approach.
